Reference no: EM133290686
Assignment:
Phil commenced running Foodie Galore soon after settlement. Initially business was good. Six months later however, Phil noticed that the construction work on the vacant block of land on Ponsonby Road had been completed and a sign saying "Health Is Us" had been installed on the front of one of the buildings. After further investigation, Phil discovered that Health is Us was an organic food store, which was going to offer the same kind of food and groceries as Foodie Galore. In addition, Phil discovered that the owners of Health Is Us had obtained the necessary consents from the Council approximately three months before Phil had even seen the advertisement on the internet advertising Foodie Galore for sale. Phil also discovered to his amazement that Lilly was the real estate agent that had sold the vacant lot on Ponsonby Road to the owners of Health Is Us.
Phil immediately requested a meeting with Lilly to seek an explanation of why she had not told him about Health Is Us. In the meeting, Lilly acknowledged that she had sold the vacant lot on Ponsonby Road to the owners of Health Is Us, and that she knew that the owners were going to be building an organic food store. Further, Lilly acknowledged that she knew Health Is Us had obtained the necessary consents from Council prior to Phil contacting Lilly about Foodie Galore. Phil was furious and accused Lilly of lies and deceit.
In response, Lilly stated that she totally disagreed with Phil's accusation. She had not said anything untrue, and didn't need to reveal the details of any other property deal. In addition, she told Phil that it was his responsibility to have completed his due diligence more carefully before purchasing. Lilly then ended the meeting despite Phil's protests.
Having read the above fact scenario, now answer the following questions:
Phil has instructed his lawyer to sue the following parties under section 35 of the Contract and Commercial Law Act 2017:
a. Lilly;
b. LMN Real Estate Limited (Licensed Agent 2008); and
c. Wilma.
Discuss which (if any) parties you think Phil would succeed in recovering damages from for a course of action in misrepresentation. If you think that Phil would not succeed against one or more of the parties, explain your reasoning.
In addition discuss what other basis the party or parties might be found liable, and again, explain your reasoning.